Brussels, Mar 29 (EFE) .- The European Union (EU) will end next March 31, after thirty years, the regime of milk quotas, giving way to a new scene that opens opportunities for the sector, but also poses threats.
The purpose of the change, according to the European Commission is allowing producers to meet growing Global demand for dairy products and compete against third countries, particularly in Asian markets, where it is estimated that over consumption will increase in the coming years.
“For the first time in thirty years, producers only respond to market forces, “he said this week the European Commissioner for Agriculture, Phil Hogan, who explained that the liberalization of the system is both” a challenge and an opportunity for the EU “.
Commissioner has indicated that sees the change with “optimism” by the possibilities “in terms of growth and employment”, at a time when global demand for dairy products is growing by an average of 2% a year.
For European producers, represented by the Committee of Agricultural Organisations and Community Cooperatives (Copa-Cogeca), in this new phase the EU should provide them the tools to respond to price volatility tools.
“Although the European regulatory framework already includes market measures that can help protect producers against volatility, such as public intervention and private storage, these are no longer a real safety net (…) in times of great market imbalances, “the secretary general of Copa-Cogeca, Pekka Pesonen said in a statement.
The transition to the new regime, which no catches producers by surprise as it was agreed at European level in 2003 will require the sector to adapt to new circumstances and a change of mentality.
“That was a precious commodity because it is required to produce, that so much effort and investment has cost us, from March 31 is not worth anything, which is paradoxical and dilapidated, since the money invested in share has not allowed to do other things, “says a report by the responsible Livestock of the agricultural organization UPA, Román Santalla, who had EFE.
access the same organization recognizes that exists in Spain “a chain of very unbalanced dairy value, determined on many occasions in value by making him a hard time losing the lower links” and adds that “this situation is to change in the future. “
” The farmers and dairies are needed and instead of hurt should join efforts in a bid for a national dairy farmer sector, a powerful dairy industry, modern diversified and value creation along the chain. “
The same organization also encouraged to imitate the countries of Central Europe, where” have built factories of industrial dairy products to meet the increasing demand for dairy products on world markets. “
Facing fears of farmers, Agriculture Commissioner stresses that” the circumstances are very different now to 1984 “, when he began regime shares, after an interventional system helps producers, especially in the late 70s and early 80s, shot milk surpluses and government spending.
“We are now competitive in Prices markets globally, interventionism is at a level that discourages production surpluses and can export 11% of our milk production without any subsidies, “said Hogan.
The goal Initial quotas, introduced in 1984, was to limit government spending and control production, thus stabilizing prices and incomes of farmers.
It also helped maintain activity in the less competitive regions, now feel particularly threatened by the new regime, although it provides specific support measures, eg for farmers in mountainous areas or difficult to access.
Although milk quotas would last in the top five, their removal was delayed until the final decision was made in 2003 and 2015 period was provided to allow farmers a “soft landing” in the new system.
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